A look into Teacher Loan Forgiveness Program & Eligibility Criteria

Teachers play a vital role in building a strong society and nation. The Teachers Loan Forgiveness Program is an initiative to encourage individuals to take up the noble profession of teaching.  Under the scheme, teachers can apply for forgiveness if they are teaching continuously for five years in elementary or secondary schools that caters the education need of low income families. Apart from it, it is important that the borrowers should meet the others conditions laid down in the program. The borrower is eligible for $17,500 on Direct Subsidized & Unsubsidized Loans and Subsidized & Unsubsidized Federal Stafford Loans. In case, the borrower has a loan that falls in plus category then automatically he is not eligible for forgiveness under the following scheme.

A look at the Eligibility Requirement of Teachers Loan Forgiveness :-

 

• The teacher applying for forgiveness needs to have an outstanding Federal Family Education Loan or Direct Loan as of October 1st, 1998.

• In case, the borrower has defaulted subsidized or unsubsidized loan then he is not eligible for forgiveness. In such scenario, the borrower should first pay the defaulted loan then apply for eligibility.

• It is necessary that the candidate applying for teacher’s loan forgiveness should complete five years in teaching profession. At the completion of the period, can apply for the same.

• Any teaching experience with AmeriCorps won’t be counted towards required five years for Teacher Loan Forgiveness.

• It is necessary that candidate should complete five years as a fulltime teacher for consecutive academic years. In short, it means there should not be any break in service. The other criteria states that one of the academic year should be after 1997-98.

• The teacher applying for teacher’s loan forgiveness needs to be employed with a secondary or elementary school that qualifies for funds and grants under the Elementary & Secondary Education act 1965.

• The school where the teachers are working should fall in the category of Low Income Schools as defined by the US Department of Education. You can find out whether the school you are working qualifies for the same by checking the annual directory designated for low income schools. 

• Teachers working with Indian Schools run by Bureau of Indian Education that serves students falling under low income group qualifies for loan forgiveness. The same is applicable for schools run by Indian Tribal Groups that qualify the Bureau of Indian Education norms. Please note, you can apply for loan forgiveness even if these schools are not listed under the Annual Directory for Designated Low Income Schools.

• The teaching experience of the borrower should be considered for forgiveness if he successfully completes consecutive 5-years in school that fulfills the criteria described by the federal government for loan forgiveness. In case, the schools meets the criteria in scheme only for one year and doesn’t meet the requirements for subsequent years then also the experience of teaching with the school can be counted towards academic teaching.